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Located at 100 Jalan Sultan, Sultan Plaza has been launched for collective sale again for $360 million. Source: Google Maps
Sultan Plaza has once again been launched for collective sale – the first such attempt following the introduction of new cooling measures – with its reserve price slashed to $360 million, reported The Business Times (BT) citing Teakhwa Real Estate.
The 44-year old building carried a reserve price of $380 million during its previous collective-sale attempt in 2019.
Located at 100 Jalan Sultan, between North Bridge Road and Beach Road, Sultan Plaza features 244 strata lots comprising 211 commercial units and 33 offices.
The property occupies a 52,471.3 sq ft site that is zoned for Commercial use under the 2019 Master Plan. This means the prospective buyer need not worry about Additional Buyer’s Stamp Duty (ABSD).
With a plot ratio of 5.0, the 99-year leasehold site has a remaining lease term of about 56 years. The squarish site could be redeveloped up to 30 to 35 storeys high, said Teakhwa Real Estate.
The Urban Redevelopment Authority’s (URA) outline planning permission advisory in 2019 showed that the site could be redeveloped in three ways – as a commercial and residential development, a fully commercial building or as a hotel.
The mixed-use development may have a gross floor area (GFA) of up to 262,356.4 sq ft, with 60% set aside for residential use and 40% for commercial use. That works out to about 104,942.5 sq ft of commercial space. The other 157,413.8 sq ft could yield around 172 apartment units averaging 915 sq ft each, subject to the relevant authorities’ approval.
The site may also be redeveloped as a hotel with 700 rooms and 52,471.3 sq ft of commercial space.
For a mixed-use development, the $360 million reserve price will work out to a land rate of $1,626 per sq ft per plot ratio (psf ppr), including the estimated differential premium, lease top-up premium and bonus balcony floor area, said Teakhwa Real Estate.
For a hotel project, the reserve price would translate to a land rate of 1,733 psf ppr.
The new cooling measures introduced by the government on 16 December include a higher ABSD rate of 35% for developers, from 25% previously – dampening the robust buying momentum for en bloc sale sites from recent months.
Despite this, the marketing agent expects the site to attract “keen competition from developers” given the “reasonable asking price and palatable quantum which hits the sweet spot”. It also pointed to the strong sales registered by nearby developments such as Midtown Modern, The M and Midtown Bay.
“Most developers are still likely to acquire land as their current stocks are running low, but will probably pick mid-sized and more reasonably priced sites, especially those within a price range of $200 million to $500 million,” Teakhwa Real Estate told BT.
A short walk to the Nicoll Highway and Lavender MRT stations, the District 7 property is near landmarks and attractions like Bugis Junction, Marina Bay, the Formula One race circuit, Raffles Hotel and Kampong Glam district.
“The subject site has an excellent shape, size and attributes that allow more design flexibility and will lower the costs in building the final product,” said Teakhwa Real Estate.
The tender for Sultan Plaza closes on 10 February 2022.
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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg.
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